II 

118TH CONGRESS 

2D SESSION S. 5212 

To amend the Internal Revenue Code of 1986 to modify the carbon oxide 

sequestration credit to ensure parity for different uses and utilizations 

of qualified carbon oxide. 

IN THE SENATE OF THE UNITED STATES 

SEPTEMBER 25, 2024 

Mr. BARRASSO (for himself, Mr. LANKFORD, and Mr. CASSIDY) introduced the 

following bill; which was read twice and referred to the Committee on Finance 

A BILL 

To amend the Internal Revenue Code of 1986 to modify 

the carbon oxide sequestration credit to ensure parity 

for different uses and utilizations of qualified carbon 

oxide. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Enhanced Energy Re5 covery Act’’. 


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1 SEC. 2. PARITY FOR DIFFERENT USES AND UTILIZATIONS 

2 OF QUALIFIED CARBON OXIDE. 

3 (a) IN GENERAL.—Section 45Q of the Internal Rev4 enue Code of 1986 is amended— 

5 (1) in subsection (a)— 

6 (A) in paragraph (2)(B)(ii), by adding 

7 ‘‘and’’ at the end, 

8 (B) in paragraph (3), by striking subpara9 graph (B) and inserting the following: 

10 ‘‘(B)(i) disposed of by the taxpayer in se11 cure geological storage and not used by the tax12 payer as described in clause (ii) or (iii), 

13 ‘‘(ii) used by the taxpayer as a tertiary 

14 injectant in a qualified enhanced oil or natural 

15 gas recovery project and disposed of by the tax16 payer in secure geological storage, or 

17 ‘‘(iii) utilized by the taxpayer in a manner 

18 described in subsection (f)(5).’’, and 

19 (C) by striking paragraph (4), and 

20 (2) in subsection (b)— 

21 (A) in paragraph (1)— 

22 (i) by striking subparagraph (A) and 

23 inserting the following: 

24 ‘‘(A) Except as provided in subparagraph 

25 (B) or (C), the applicable dollar amount shall 

26 be an amount equal to— 


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1 ‘‘(i) for any taxable year beginning in 

2 a calendar year after 2024 and before 

3 2027, $17, and 

4 ‘‘(ii) for any taxable year beginning in 

5 a calendar year after 2026, an amount 

6 equal to the product of $17 and the infla7 tion adjustment factor for such calendar 

8 year determined under section 43(b)(3)(B) 

9 for such calendar year, determined by sub10 stituting ‘2025’ for ‘1990’.’’, and 

11 (ii) in subparagraph (B), by striking 

12 ‘‘shall be applied’’ and all that follows 

13 through the period and inserting ‘‘shall be 

14 applied by substituting ‘$36’ for ‘$17’ each 

15 place it appears.’’, 

16 (B) in paragraph (2)(B), by striking 

17 ‘‘paragraphs (3)(A) and (4)(A)’’ and inserting 

18 ‘‘paragraph (3)(A)’’, and 

19 (C) in paragraph (3), by striking ‘‘the dol20 lar amounts applicable under paragraph (3) or 

21 (4)’’ and inserting ‘‘the dollar amount applica22 ble under paragraph (3)’’, 

23 (3) in subsection (f)— 

24 (A) in paragraph (5)(B)(i), by striking 

25 ‘‘(4)(B)(ii)’’ and inserting ‘‘(3)(B)(iii)’’, and 


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1 (B) in paragraph (9), by striking ‘‘para2 graphs (3) and (4) of subsection (a)’’ and in3 serting ‘‘subsection (a)(3)’’, and 

4 (4) in subsection (h)(3)(A)(ii), by striking 

5 ‘‘paragraph (3)(A) or (4)(A) of subsection (a)’’ and 

6 inserting ‘‘subsection (a)(3)(A)’’. 

7 (b) CONFORMING AMENDMENT.—Section 

8 6417(d)(3)(C)(i)(II)(bb) of the Internal Revenue Code of 

9 1986 is amended by striking ‘‘paragraph (3)(A) or (4)(A) 

10 of section 45Q(a)’’ and inserting ‘‘section 45Q(a)(3)(A)’’. 

11 (c) EFFECTIVE DATE.—The amendments made by 

12 this section shall apply to taxable years beginning after 

13 December 31, 2024. 

Æ 


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